U.S. Teledermatology Market Size, Share & COVID-19 Impact Analysis, By Type (Products, and Services {Teleconsultation, Telemonitoring, Tele-education, and Others}), By Modality (Store-and-forward (Asynchronous), Real-time (Synchronous), and Others), By End User (Healthcare Facilities and Home Care), and Country Forecast, 2023-2030

The U.S. teledermatology market size was worth USD 3.01 billion in 2022 and is projected to grow at a CAGR of 14.2% during the forecast period. 

Teledermatology is part of dermatology and one of the most common applications of telemedicine or e-health. It is a study and practice of dermatology care using interactive audio, visual, and data communications from a distance. It has several benefits, including reduced waiting times, providing treatment for urgent care patients, and improved patient satisfaction and convenience.

In the U.S., there is a significant rise in the prevalence of skin disorders. Also, various agencies are taking vital initiatives to provide reimbursement facilities for telemedicine services. Such a scenario augments the market growth rate during the forecast period.

• For instance, in 2021, a bill was introduced in the Senate to make telehealth reimbursement permanent. Although the current bill proposes these changes for selective services, such as physical therapists, audiologists, occupational therapists, and speech-language pathologists, and it is expected to extend to all services in the future.

Additionally, the growing focus of the market players to provide advanced telehealth products and services is expected to propel the CAGR during the forecast period.

The COVID-19 pandemic had a strong positive impact on the market due to the increased telemedicine adoption. These services have been widely adopted during the pandemic as virtual patient care promotes social distancing and decreases viral exposure risk. Similarly, market players experienced strong revenue growth due to increased use of these services in 2020.

LATEST TRENDS

Incorporation of Artificial Intelligence (AI) is a Prominent Trend in the U.S.

One of the key trends in the U.S. market is the incorporation of artificial intelligence in teledermatology products. Market players have been focusing on introducing novel technologies, including deep learning, machine learning, and others, intending to improve the diagnosis of dermatology conditions, such as melanoma, through telemedicine platforms.

• In September 2022, MCI Onehealth Technologies Inc. and Oro Health collaboratively launched AI-driven MCI Dermatology Connect. This launch will help meet the needs of Ontarians currently waiting for a consultation on minor dermatological conditions and increase access to Dermatologists regardless of geographic constraints.

DRIVING FACTORS

Elevating Incidence of Skin Conditions to Determine Market Growth

There has been a significant rise in teledermatology consultations due to the elevating prevalence of skin disorders, such as skin cancer, eczema, and psoriasis. Telemedicine solutions provide the opportunity to physicians and dermatologists to deliver fast and high-quality care to patients. Such growing prevalence and increased product and service adoption are expected to drive the U.S. teledermatology market growth.

• For instance, according to a Credevo article published in 2021, around 50 million people in the U.S. suffer from acne, 30 million from eczema, and 7.5 million from psoriasis. About 9,500 people in the U.S. are diagnosed with skin cancer every day.

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According to an article published by Dermatology Online Journal in 2020, skin conditions have become the fifth most commonly diagnosed condition using telemedicine in the U.S. Some skin conditions well suited for online consultation include acne, eczema, psoriasis, rosacea, alopecia, and viral and fungal rashes.

RESTRAINING FACTORS

Inadequate Reimbursement for Teledermatology to Deter the Market Expansion

Despite the growing trend of teledermatology services, improper and inadequate reimbursement restricts product and service adoption. The U.S. reimbursement agencies have a limited definition of telehealth but are often reimbursed under telemedicine services. Also, it is not considered as part of Medicaid's definition. Also, reimbursement facilities are limited to certain healthcare services, geographic areas, and the service delivery modality.

One of the most significant barriers experienced by dermatologists is the lack of reimbursement for telemedicine. The dermatologists are not paid enough, and insurance is not covered properly. Also, several restrictions are imposed by state medical licensing for practicing telehealth services. Such factors are expected to deter the market growth.

• For instance, according to an article published by The American Journal of Managed Care (AJMC) in 2021, a survey was conducted with 5,000 participants, and 591 completed the surveys for a 13.5 percent response rate. Out of the 570 respondents who used telemedicine during the COVID-19 pandemic, low reimbursement 69.8% (398 responded out of 570), concerns about malpractice and liability, i.e., dermatologists should provide the same standard of care as in-person dermatology 27.0% (154 responded out of 570), technology and connectivity issues 39.1% (223 responded out of 570), and government regulations 23.2% (132 responded out of 570), were some of the major barriers identified.

SEGMENTATION

By Type Analysis

Based on type, the market is segmented into products and services. The service segment is further sub-segmented into tele-education, telemonitoring, teleconsultation, and others.

The services segment held the largest market share in 2022. Teledermatology services have shown a potential reduction in costs and waiting times, improved access in various areas for patients who experience difficulties attending in-person appointments, and reduced appointment cancellations and absenteeism. Due to the prominent benefits of these services, several hospitals and clinics have efficiently adopted the teledermatology platforms. Hence, these factors, in turn, favor the growth of the services segment.

• For instance, according to a new article by Business Insider in 2022, dermatology's highest average wait time is 34.5 days. In Minneapolis, the average wait time for dermatologists is 72 days, while Philadelphia had the lowest average wait time of 9 days.

By Modality Analysis

By modality, the market is segmented into store-and-forward (asynchronous), real-time (synchronous), and others.

The store-and-forward (asynchronous) segment held the dominant share in the U.S. market. These services minimize the referrals and diminish the long consultation waiting time. The store-and-forward (SAF) modality is commonly used to counsel patients as it improves the diagnostic procedure and reduces barriers to specialty care. Such potential advantages of the store-and-forward (SAF) modality have enormously contributed to the segment’s growth during the forecast period.

• For instance, according to an article published by escape library, the store-and-forward (asynchronous) is the most commonly practiced modality in the U.S.

By End User Analysis

Based on end user, the market is segmented into healthcare facilities and home care.

The healthcare facilities segment held a significant share in 2022. The segment is expected to grow due to the rising adoption of telehealth services among healthcare professionals across the U.S. Telehealth has become more commonplace in hospitals nationwide, and physicians are more willing to use the technology. Such factors contribute to the growth of teledermatology services in healthcare facilities.

• According to an article published by Science Direct in 2021, a survey reported that among 2,923 U.S. hospitals, 73.0% had at least one telehealth capability in 2018.

KEY INDUSTRY PLAYERS

The market's competitive landscape shows a fragmented structure. Teladoc Health, Inc., MDLIVE (Cigna), and 3Derm held a prominent market share in 2022. These companies’ robust service and product offerings, expanded network in various states, strategic activities, and market presence have contributed to their dominance in the market.

• In July 2019, MDLIVE and CoxHealth announced a strategic partnership to deliver comprehensive care across the U.S. state of Missouri.

Besides this, some other key market players include FirstDerm, Doxy.me Inc., 3Gen, and DermatologistOnCall. These companies focus on strengthening the product & service offerings and strategic activities to enhance their U.S. teledermatology market share.

LIST OF KEY COMPANIES PROFILED:

• 3Gen (U.S.)


• 3Derm (U.S.)


• MDLIVE (Cigna) (U.S.)


• FirstDerm (U.S.)


• Teladoc Health, Inc. (U.S.)


• DermatologistOnCall (Iagnosis) (U.S.)


• Doxy.me Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023 – Piction Health Dermatology, the pioneering AI-enable dermatology virtual clinic is officially launched for Massachusetts residents.


• June 2020 – The American Academy of Dermatology (AAD) has named board-certified dermatologists Hon Pak, MD, FAAD, MBA, and Darryl Hodson, MD, FAAD, as Patient Care Heroes for launching the first robust teledermatology project in the U.S. in 2000.


• January 2020 – 3Derm announced that it received two FDA Breakthrough Device designations for 3DermSpot. This algorithm uses artificial intelligence (AI) and highly standardized skin images to autonomously detect melanoma, squamous, and basal cell carcinoma.

REPORT COVERAGE

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The U.S. teledermatology market report depicts a qualitative and quantitative market analysis. It emphasizes key segments such as type, material, and end user. Moreover, it highlights the deep analysis of key industry developments, regulatory scenarios, a summary of product applications in cranial nerves & others, trends of usage of these products, and key players in the market. Additionally, it includes market dynamics, the impact of COVID-19, and the contributing factors for the U.S. teledermatology market forecast.

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